(New York) Oil prices rose sharply on Wednesday, despite the next puncture of 15 million additional barrels in strategic reserves announced by President Joe Biden, who nevertheless aims to lower prices.
Posted yesterday at 4:08 p.m.
The price of a barrel of Brent North Sea oil for December delivery gained 2.64%, to close at $92.41.
That of the American West Texas Intermediate (WTI), with maturity in November, took 3.29% to 85.55 dollars.
Joe Biden announced on Wednesday the release, in December, of an additional 15 million barrels of crude from strategic reserves, which corresponds to the last tranche of the 180 million barrel program announced in the spring.
“I told my team to be ready to carry out new draws in the coming months, if necessary,” declared the Head of State, during a press conference.
Since the beginning of September 2021, the US government has drawn some 216 million barrels of these reserves (SPR), which have thus decreased by more than a third and are at their lowest level since June 1984.
But while the operation aims to calm the prices of black gold, prices, already on the rise before Joe Biden’s speech, have jumped.
“President Biden’s speech had the opposite effect” of that desired, observed Phil Flynn, of Price Futures Group. But, for him, the reaction of the operators was not linked to the famous barrels.
“The market is relieved because there was no suspension of exports” ordered by the American president, a scenario that brokers did not exclude.
A suspension or limitation of exports would have deprived American oil of part of its outlets and thus caused the price of WTI to fall.
Asked on Tuesday about the possibility of limiting or suspending oil exports, a US official explained, on condition of anonymity, that the Biden administration “keeps all the tools on the table, anything that could help ensure supply. of the American market.
For Bill O’Grady, of Confluence Investment, this new use of strategic reserves is more a short-term political maneuver than a strategic decision.
“There is no doubt that he is trying to keep the price of gasoline low enough to help him during the legislative elections on November 8, he said.
Although it has fallen significantly since June, the price of gasoline, a strong marker for American motorists and voters, remains 15% higher than its level last year at the same time in the United States.
Joe Biden “is coming to the end of solutions” to prevent energy prices from rising, says Bill O’Grady. “If you want to continue to support Ukraine in this war (against Russia), the Americans will have to pay more for their energy, it is unavoidable. »
Prices were also boosted by the surprise drop in commercial oil reserves in the United States, which fell by 1.7 million barrels while analysts forecast an increase of 2.5 million barrels. This difference is mainly linked to the increase in crude exports (+44% over one week) and to a lower use of strategic reserves last week.